General Motors Expects To Raise $13 Billion From IPO
There are some numbers being thrown around about how much General Motors expects to raise from their future IPO. They plan to sell about $13 billion in common and preferred shares as part of the IPO.
GM would sell nearly a quarter of their 1.5 billion shares in common stock at prices between $26-$29 per share. The automotive giant is also planning to sell 60 million shares of preferred stock at a price of about $50 per share.
Currently the Treasury Department owns about 60.8% stake in the company. Once the stock starts trading, the value of that 60.8% stake would then become worth between $23.7 to $26.5 billion. This is less than the $40 billion that the government plugged into GM to keep the company alive.
“If GM can’t sustain its current sales momentum, share value post-IPO will plummet,” stated Edmunds.com CEO Jeremy Anwyl. “I still think the IPO is timed about a year too early; extra time is needed to reestablish credibility.”
[CNN]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry